Two big questions re: Meta:
1) How much advertising revenue did Meta generate last quarter?
2) How much is Meta investing in the metaverse?
Big question #1: How much advertising revenue did Meta generate last quarter?
Meta advertising revenue (YoY growth):
1) 2015-Q3 – $4.3B
2) 2016-Q3 – $6.8B (↑ 59%)
3) 2017-Q3 – $10.1B (↑ 49%)
4) 2018-Q3 – $13.5B (↑ 33%)
5) 2019-Q3 – $17.4B (↑ 28%)
6) 2020-Q3 – $21.2B (↑ 22%)
7) 2021-Q3 – $28.3B (↑ 33%)
8) 2022-Q3 – $27.2B (↓ 4%)
Meta advertising revenue per user in the U.S. and Canada (YoY growth):
1) 2021-Q3 – $52.34
2) 2022-Q3 – $49.13 (↓ 6%)
Meta daily active users in the U.S. & Canada (YoY growth):
1) 2015-Q3 – 167M
2) 2016-Q3 – 178M (↑ 7%)
3) 2017-Q3 – 185M (↑ 4%)
4) 2018-Q3 – 185M (↑ 0%)
5) 2019-Q3 – 189M (↑ 2%)
6) 2020-Q3 – 196M (↑ 4%)
7) 2021-Q3 – 196M (↑ 0%)
8) 2022-Q3 – 197M (↑ 1%)
Bottom line: Meta could be in deep 💩. Revenue is declining. Expenses (Metaverse, etc.) are rising. Net income declined 34% YoY. And BTW, if Apple’s insane idea to treat Facebook advertising like digital goods somehow comes to life, their margin from advertising vanishes.
By the way: When does Meta get the Super Pumped treatment so we can find out when Apple decided to nuke them?
Big question #2: How much is Meta investing in the metaverse?
Quick answer: ≈ 20X the amount Apple spent developing the iPhone.
